Business, 27.12.2020 15:50 Aaraar

The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $13 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $224,000
Benefits 36,000
Supplies 21,000
Office Expenses 39,000
Office Depreciation 28,000
Computer Depreciation 24,000
Total $372,000

The department expects to lay out 25,000 pages for 2014. The computers used by the department have an estimated residual value of $9,000. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside.

Required:
Prepare a differential analysis dated February 22 to determine whether TAG-I) should lay out pages internally (Alternative l) purchase layout services from the outside.

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The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These pe...

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